Site on The Peak open for tender

PUBLISHED : Wednesday, 17 November, 2010, 12:00am
UPDATED : Wednesday, 17 November, 2010, 12:00am

Majority ownerships at Stewart Terrace on The Peak are up for tender and are expected to attract interest from developers.

Nineteen out of the 20 flat owners have appointed surveyors firm Professional Property Services to handle the tender, which will close on December 15.

The winning bidder of the tender will acquire 95 per cent ownership of Stewart Terrace. The bidder can then apply the Land (Compulsory Sale for Redevelopment) Ordinance to trigger an auction to secure the last property.

Stewart Terrace, built in 1949 at 89-95 Peak Road, comprises eight two- and three-storey residential buildings. The properties will be sold on an 'as is' basis with vacant possession by the end of next year.

Property agents believe many developers will have a keen interest as the site is one of only a few on The Peak available for sale and redevelopment.

The Town Planning Board has zoned the 61,449 square foot site for residential use. The building height is limited to four storeys including carport, while the maximum development plot ratio is 0.5 or the existing plot ratio.

Based on development plans submitted to the Buildings Department in 1987, the site can support a residential project with a total gross floor area of 52,330 sq ft.

The previous land sale on The Peak was a luxury residential site at 103 Mount Nicholson Road, sold in a government auction on July 29. Nan Fung Development teamed up with Wheelock Properties to acquire the site for HK$10.4 billion, or HK$32,014 per sq ft, the third most expensive site in the city in terms of floor area price.

As most of the flat owners at Stewart Terrace are end-users, flats changed hands only 16 times in the past eight years, with no transaction recorded in the last two years. The last property to change hands was a 3,077 sq ft flat sold for HK$50 million, or HK$16,250 per sq ft, in June 2008. The price was 82 per cent higher than that for a 3,083 sq ft flat sold for HK$27.5 million, or HK$8,920 per sq ft, in April 2005.